Started an engineering consulting firm

Assignment Help Financial Management
Reference no: EM131908813

Consider the following situation:You and two of your very best friends have started an engineering consulting firm. Being confident people you name your firm “We’re Right and You Need Us.” This firm studies advanced principles and makes recommendations to clients. You have established a monthly revenue stream of $150,000 per month for the first year from six customers (two per partner) located in the southwestern US. In other words, your total revenue is $150,000 per month and you pay all your costs out of that revenue. Your headquarters is Las Cruces, NM but you spend a lot of time traveling. You actually make about 30 trips per partner a year at an average cost of $2,500 per trip to make sales and attend conferences besides consulting. Every year you each buy a new computer and update software at $5,000 per year per partner. You hope to expand to four customers per partner by year 3. Assume revenue per customer is $15,000 per month.Create and explain a financial model that governs a five-year planning horizon for your firm. The three of you consult, travel, market, make sales calls, attend professional conferences and use computers and Internet access to do your jobs. Do not consider inflation, taxes or interest in any part of this analysis.

Reference no: EM131908813

Questions Cloud

What bid price should you submit on contract : If your tax rate is 34 percent and your required return on this project is 12 percent, what bid price should you submit on the contract?
Create amortization schedule : Create an amortization schedule for this company, Using a bar chart, graph the cash flows.
Using tax formula-beginning with income broadly conceived : Using the Tax formula, beginning with Income Broadly Conceived, provide a detailed calculation of the couple's 2017 taxable income.
Expected rate of return on investment portfolio : What would be the expected rate of return on your investment portfolio if the dollar amount you invested for the three stocks are $8,000,
Started an engineering consulting firm : Consider the following situation:You and two of your very best friends have started an engineering consulting firm.
The regression line tell you about the stock market risk : what would the slope of the regression line tell you about the stock’s market risk?
Make the required monthly payment every month : Assume Ann will make the required monthly payment every month for 30 years.
What is the arbitrage profit per dollar used : Suppose the cross-rate is ¥136 = £1. What is the arbitrage profit per dollar used?
Sale necessary for company to pay underwriter spread : What are the required proceeds from the sale necessary for the company to pay the underwriter's spread?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd